Integrated Safeguards Data Sheet (Updated)
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1 THE WORLD BANK GROUP._-- - = -InfoShop Date Prepared/Updated: 03/12/2003 Section I - Basic Information A. Basic Project Data Country: MOZAMBIQUE Project: Public Sector Reform Authorized to Appraise Date: May 30, 2002 Bank Approval: March 18, 2003 Integrated Safeguards Data Sheet (Updated) Project ID: P Task Team Leader: Harry C. Garnett IBRD Amount ($m): IDA Amount ($m): IDA GRANT FOR POOREST COUNTRY Managing Unit: AFTPR Sector. Central government administration (100%) Lending Instrument: Adaptable Program Loan (APL) Theme: Other accountability/anti-corruption (P); Status: Lending Decentralization (P); Public expenditure; financial management and procurement (P); Administrative and civil service reform (P) I.A.2. Project Objectives To support the Government to restructure the public service for decentralized service delivery, professionalize the public service, and improve governance. I.A.3. Project Description: 1.1 Restructuring Objective: To begin a process of restructuring central government so that service delivery will be improve through decentralization and rationalization ofprocedures. Phase I will focus on supporting key ministries committed to reform to prepare plans to decentralize, deconcentrate, and privatize the delivery of services and at the same time move towards focusing the ministries on policy formulation, monitoring and evaluation. Some ministries may be ready to implement the reforms before the end of the first phase. The Government public sector reform and team and country team members have confirmed the readiness of a number of ministries for restructuring; the Prime Minister has asked that all ministries prepare restructuring plans. The implementation of the reforms, and the associated capacity building, will be supported by thdfundo de Melhoramento do Desempenho (Performance Improvement Facility, PIF), which will be designed and begin to be implemented in Phase I (see Annex 13 for a description of how the fund will be operated). The Facility will include an incentive structure that will reward ministries and agencies that are committed to reform and meet their reform targets. The preparation of the plans, and the actual restructuring, will be carried out by the ministries themselves. The project's role will be to define the process, establish a change management team to support the ministries, train ministry staff in change management and strategic planning, and
2 2 monitor progress (see Annex 15 for a description of the ministerial restructuring process). The project will help the Council of Ministers to exercise its collective responsibility for poverty reduction and the implementation of PARPA by improving the policy formulation, decision-making, implementation, monitoring and evaluation process. The project will strengthen the capacity of the Office of the Prime Minister - i.e. the managers of the policy process - through adequate staffing, training and equipment and will build capacity to link policy and resources more closely, especially through the Medium Term Expenditure Framework (MTEF) and the Poverty Reduction Strategy Plan (PARPA), and monitor implementation. These activities will also help to realign the center of government on policy and monitoring as service delivery is progressively decentralized. The project will also provide capacity building support for reorganizing district administration and improving working conditions at the district level through the provision of training and equipment. Also, since it is important to be able to demonstrate progress while long-term structural changes are planned and implemented, the project will provide funding support to the GoM Quick Wins Program through the PIF. The quick wins will involve reengineering existing process to improve the delivery of services. Linkages will be established between restructuring and reengineering capacity building support under this project and the sectoral reform targets set for the first PRSCs. The PIF will in effect provide funding to build the capacity of the sector ministries to prepare for the reforms the implementation of which would be funded by the PRSC. 1.2 Professionalization Objective: Motivate public servants to become more responsive to the needs of citizens and businesses and increase professionalism. There are immediate and long-term issues to be addressed. The leaders, managers, and key technical and professional staff essential to prepare and implement the reforms needed under this project and the sectoral reform programs have to have the incentives needed to become fully committed to reform and to their roles in the reform programs. There is an immediate need to enhance their conditions of employment to achieve this. There is also a medium term need to reform the salaries in the public service to meet the needs of a restructured and reoriented public sector: restructured for decentralized service delivery, and reoriented to service the public and facilitate business development. These basic medium term reforms of pay and conditions can only be executed alongside the restructuring, since the restructuring will help to define which are the key positions that are below market. In addition, some restructuring may be required to create the resources needed to pay the higher salaries. The process of preparing the restructuring plans will trade off higher salaries against other uses of funding to meet the redefined objectives of the ministries concerned. Since the restructuring plans will be prepared during phase I and for the most part implemented in phase 2, it will only be possible to implement the more basic, longer term pay reforms in phase 2. Thus the project will fund capacity building for the preparation of a sustainable medium termn pay strategy, the design of a scheme to enhance the salaries of key staff in the short term, and the associated implementation plans, as well as substantial training in the skills required for the current and progressively reformed public service. It is assumed that the funding for the salary enhancement will be funded by the budget. To underpin the strategy, studies will be undertaken into both supply and demand
3 3 aspects of the labor market of which the public sector is part. The enhancement would begin during Phase 1 and the implementation of the strategy would take place over a number of years, as resources became available, partly as a result of the restructuring. The mainstreaming of gender and HIV-AIDS programs as part of public sector reform will be carried out with the support of other donors who are members of the Public Sector Reform Donor Working Group and who participated in the appraisal. Capacity building support will be given for the following: * Support design and implementation of sustainable medium term pay strategy to establish the priorities for raising the salaries of civil servants within the context of the revenue expectations of government and the policy priorities established in MTEF (study is nearing completion); * Prepare plans to introduce results oriented performance management for senior managers and in key central coordination agencies; * Reform Human Resources Management processes to improve responsiveness and efficiency, and to encourage the increasing professionalization of the public service, including establishing equal opportunities for women Governance Objective: Improve allocation, efficient use and accountability ofpublic resources. The important reforms of expenditure management and accountability (referred to as the SISTAFE reform in Mozambique) which are part of the Government's Public Sector Reform Strategy and Implementation Plan, will be supported by the GI0 group of donors, led by the IMF. The project will support the governance agenda by helping to establish an accounting profession for the first time in Mozambique, raising the policy profile of procurement reform, decentralizing procurement capacity, and strengthening the oversight capacity of the National Assembly through technical assistance and training for its Secretariat. 1.4 Program Coordination Objective: Enhance UTRESP and CIRESP capacity to coordinate and monitor the reforms and communicate with key stakeholders. * Build capacity of UTRESP to coordinate, administer, and monitor the Government's Public Sector Reform Program, including those parts supported by other donors, through training, advisory services and equipment. * Build change management capacity at UTRESP and in ministries. * Establish Council of Advisors drawn from outside the public service. Components: * Restructuring * Professionalization * Governance * Program Coordination I.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas.)
4 4 Country-wide since the project will support the government's national strategy for public sector reform. B. Clheck Environmental Classiflcation: C (Not Required) Comments: C. Safeguard Policies Triggered Policy Applicability Environmental Assessment (OP/BP/GP 4.01) 0 Yes 0 No Natural Habitats (OPiBP/GP 4.04) Forestry (OP/GP 4.36) Pest Management (OP 4.09) Cultural Property (OPN 11.03) Q Yes * No Indigenous Peoples (OD 4.20) D Yes * No Involuntary Resettlement (OP/BP 4.12) 0 Yes 0 No Safety of Dams (OP/BP 4.37) Projects in International Waterways (OP/BP/GP 7.50) 0 Yes * No Projects in Disputed Areas (OP/BP/GP 7.60)* G Yes * No *By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas Section II - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data. II.D.la. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts. Il.D. I b. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. II.D.lc Describe any potential long term impacts due to anticipated future activities in the project area. II.D.2. In light of 1, describe the proposed treatment of alternatives (if required) II.D.3. Describe arrangement for the borrower to address safeguard issues II.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. E. Safeguards Classification. Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply.
5 5 [ ] SI. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in management of one or more safeguard areas [ ] S2. - One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable [X] S3. - No safeguard issues [ ] SF. - Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues. F. Disclosure Requirements Environmental Assessment/Analysis/Management Plan: Expected Actual Date of submission to InfoShop Date of distributing the Exec. Summary of the EA to the ED (For category A projects) Resettlement Action Plan/Framework: Expected Actual Date of submission to InfoShop Indigenous Peoples Development Plan/Framework: Expected Actual Date of submission to InfoShop Pest Management Plan: Expected Actual Date of submission to InfoShop Dam Safety Management Plan: Expected Actual Date of receipt by the Bank Date of submission to InfoShop If in-country disclosure of any of the above documents is not expected, please explain why. Signed and submitted by Name Date Task Team Leader: Harry C. Garnett 03/12/2003 Project Safeguards Specialists 1: Project Safeguards Specialists 2: Project Safeguards Specialists 3: Approved by: Name Date Regional Safeguards Coordinator: Serigne Omar Fye 03/12/2003 Sector Manager/Director: Brian David Levy 03/12/2003 For a list of World Bank news releases on projects and reports, click here
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